The IRS rule of thumb for tax records
The IRS ties record keeping to the period of limitations: the time during which you can amend a return to claim a credit or refund, or the IRS can assess additional tax. Its page How long should I keep records? lists these periods:
- 3 years in general, counted from the date you filed your return.
- 6 years if you do not report income that you should have reported and it is more than 25% of the gross income shown on your return.
- 7 years if you file a claim for a loss from worthless securities or a bad debt deduction.
- Indefinitely if you do not file a return or file a fraudulent return.
- For a claim for credit or refund filed after the return, the later of 3 years from filing or 2 years from when you paid the tax.
- Employment tax records: at least 4 years after the tax becomes due or is paid, whichever is later.
Records connected to property, such as a home, follow a different clock: keep them until the period of limitations expires for the year in which you dispose of the property. The IRS also reminds you that insurance companies or creditors may require you to keep some records longer than the tax rules do.
Receipts for things you buy
Outside of taxes, most household receipts matter for one reason: proving when and where you bought something. A warranty usually starts on the purchase or delivery date, so the receipt is the document a seller or manufacturer will ask for. A practical rule is to keep a purchase receipt for as long as the warranty lasts, plus the time a repair might take if a claim is open near the end.
For big-ticket items such as a TV, a laptop, a sofa or kitchen appliances, keep the receipt for as long as you own the item. It helps with insurance claims after a theft, fire or flood, because it shows what you paid and when. It also helps when you sell the item, since buyers trust a product with a clear purchase history.
Home improvement receipts
Receipts for a new roof, a kitchen remodel or an added bathroom can affect the cost basis of your home, which matters when you sell it. Keep them until you sell the home, and then for the limitation period of the tax year in which you sold it. A labeled folder or a scanned set per project is enough.
Bills and statements
Utility bills are usually only needed for about a year, mainly to compare usage or settle a billing dispute. Keep them longer if you claim a home office deduction or need them for another tax reason. Bank and credit card statements can be discarded once you have reconciled them against your own records, unless they support something on your tax return, in which case they follow the tax periods above.
How long to keep receipts: table
| Document | Keep for | Why |
|---|---|---|
| Records supporting your tax return | 3 years in general (6, 7 or indefinitely in specific cases) | IRS period of limitations |
| Purchase receipt for a product with a warranty | At least until the warranty ends, plus any open repair | Proof of purchase date for a claim |
| Receipts for big-ticket items | As long as you own the item | Insurance claims and resale |
| Home improvement receipts | Until you sell the home, plus the limitation period | Cost basis when you sell |
| Property purchase records | Until the limitation period ends for the year you dispose of it | IRS guidance on property records |
| Utility bills | About 1 year, longer if tax-relevant | Usage comparison and disputes |
| Bank and credit card statements | Until reconciled, longer if tax-relevant | Checking charges and refunds |
| Employment tax records | At least 4 years | IRS guidance |
Thermal receipts fade: photograph them
Most store receipts are printed on thermal paper, which fades with heat, light and time. A receipt that was perfectly readable when you bought a washing machine may be blank by the time the warranty claim comes. Photograph or scan it on the day of purchase, make sure the store name, date, item and total are legible, and keep the digital copy with the product it belongs to. For online orders, save the order confirmation e-mail or download the invoice as a PDF.
A simple system that works
You do not need a complex filing cabinet. Sort receipts into three groups: tax records by year, product receipts by item, and everything else. Once a year, delete or shred what has passed its keep-for date. The hardest part is usually finding the right receipt years later, which is why linking it to the product itself works better than a single folder of images.
How Hanory helps
In Hanory, each product has its own record with the purchase date and warranty end date, and you attach photos of the receipt and the warranty document directly to it. When you need proof of purchase, you open the product instead of searching a camera roll. Maintenance and subscription reminders sit alongside your products, and a daily e-mail summary flags warranties that are about to end. The free plan includes 1 home and unlimited products.
This is not legal or tax advice. The household periods in this guide are practical suggestions, not legal requirements; your situation may call for longer retention. For tax rules, see the IRS page How long should I keep records? and ask a tax professional about your case.
Frequently asked questions
How long should I keep receipts for taxes?
The IRS generally says 3 years from the date you filed the return. It is 6 years if you underreported income by more than 25% of the gross income shown, 7 years for a loss from worthless securities or a bad debt deduction, and indefinitely if you did not file or filed a fraudulent return.
How long should I keep purchase receipts for warranties?
At least as long as the warranty lasts, plus the time a repair might take if a claim is open near the end. For big-ticket items, keep the receipt as long as you own the item for insurance claims and resale.
Should I keep home improvement receipts?
Yes. They can affect the cost basis of your home, so keep them until you sell it and then for the period of limitations of the tax year in which you sold it.
How long should I keep utility bills and bank statements?
Utility bills are usually needed for about a year unless they are tax-relevant, for example for a home office. Bank and credit card statements can go once reconciled, unless they support your tax return.
Is a photo of a receipt good enough?
A clear photo or scan is usually the practical way to keep a receipt, especially thermal paper that fades. Make sure the store, date, item and total are readable, and check whether a specific seller or authority asks for the original.